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Is there a J-curve effect in Tunisia’s bilateral trade with her partners? New evidence from asymmetry analysis

Author

Listed:
  • Mohsen Bahmani-Oskooee

    (The University of Wisconsin-Milwaukee)

  • Thouraya Hadj Amor

    (Monastir University)

  • Hanafiah Harvey

    (Pennsylvania State University)

  • Huseyin Karamelikli

    (Karabuk University)

Abstract

Recently a new direction on the relation between the exchange rate and the trade balance has emerged where the emphasis is on application of asymmetry analysis and nonlinear models. Whereas, the linear models have failed to provide strong support for the J-curve effect, the nonlinear models have proved to be fruitful. We add to this later literature by estimating bilateral trade balance models of Tunisia with her six large partners. The results reveal that exchange rate changes do have short-run asymmetric effects in all six models, short-run adjustment asymmetric effects in three models, and significant long-run asymmetric effects in three models.

Suggested Citation

  • Mohsen Bahmani-Oskooee & Thouraya Hadj Amor & Hanafiah Harvey & Huseyin Karamelikli, 2019. "Is there a J-curve effect in Tunisia’s bilateral trade with her partners? New evidence from asymmetry analysis," Economic Change and Restructuring, Springer, vol. 52(1), pages 1-18, February.
    • Handle: RePEc:kap:ecopln:v:52:y:2019:i:1:d:10.1007_s10644-017-9216-3
    DOI: 10.1007/s10644-017-9216-3
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    References listed on IDEAS

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    Cited by:

    1. Amor, Thouraya Hadj & Nouira, Ridha & Rault, Christophe & Sova, Anamaria Diana, 2023. "Real exchange rate misalignments and economic growth in Tunisia: New evidence from a threshold analysis of asymmetric adjustments," The Quarterly Review of Economics and Finance, Elsevier, vol. 88(C), pages 215-227.
    2. Makrem Ben Doudou & Ridha Nouira & Sami Saafi & Aram Belhadj, 2022. "Do exchange rate changes have threshold effects on the trade balance? Evidence from Tunisia," Economic Change and Restructuring, Springer, vol. 55(1), pages 511-537, February.
    3. Mohsen Bahmani-Oskooee & Ridha Nouira, 2020. "On the impact of exchange rate volatility on Tunisia’s trade with 16 partners: an asymmetry analysis," Economic Change and Restructuring, Springer, vol. 53(3), pages 357-378, August.

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    More about this item

    Keywords

    J-curve; Non-linear ARDL approach; Asymmetry effects; Tunisia; Six partners;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

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